To make its supply chain fit for the future, Hilti, a global player in the construction industry, is revising its current supply chain setup. In particular, the firm has identified three restructuring alternatives: (1) Low pain low gain: Keep the existing supply chain setup and pursue only minor changes. (2) Consolidate around existing structures: Increase the profitability of the existing structures and consolidate production. Closures of individual plants might be necessary. (3) Greenfield: Exploit the potential of a low-cost region and shift the entire production to new facilities in Eastern Europe. The case takes a look at the different options Hilti has and outlines the underlying strategic alternatives.
Learning Objective
While discussing the case, students will specifically learn about the chances, difficulties and trade-offs between different objectives involved with supply chain reorganization.
Keywords
Supply Chain Reorganization, Assessing Options, Construction, Production Management, Operations Management
Settings
Liechtenstein
January – September 2005
Available Languages
English
Related material
Teaching note
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